CCUS framework India: Union Cabinet weighs Rs 20,000 crore support over five years

The Union Cabinet is weighing a plan to set up a Rs 20,000 crore framework. The proposal aims to support Carbon Capture, Utilisation and Storage, or CCUS, for five years. An official shared the update on Wednesday. The same plan is under the Cabinet approval process, according to the official.

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The proposal follows a Union Budget 2026-27 announcement. The budget suggested a Rs 20,000 crore outlay over five years. The spending is meant to promote Carbon Capture, Utilisation and Storage technologies. The move links to India’s net-zero target for 2070 and rising energy needs.

Carbon Capture, Utilisation and Storage funding plan under Cabinet review

Joint Secretary in the Ministry of Power, Aadhar Raj, spoke at a CCUS seminar. The event was organised by the PHD Chamber of Commerce and Industry, or PHDCCI. Aadhar Raj stressed policy support and strong institutions. Aadhar Raj also pointed to planned investments to help low-carbon technologies grow.

"CCUS represents a significant opportunity for India to balance economic growth with its climate commitments. Strong collaboration among policymakers, industry, research institutions, and investors will be essential to develop scalable, commercially viable carbon management solutions that can contribute meaningfully to Indias net-zero ambitions,\" he said as per a PHDCCI statement.

Carbon Capture, Utilisation and Storage talks focus on policy and investment

The seminar included senior government officials and industry leaders. Researchers, technology providers, investors, and sustainability experts also joined. Participants discussed how CCUS could aid India’s decarbonization journey. The group also examined policy, finance, and technology steps needed. The focus was on large-scale use in hard-to-abate sectors.

\"The recommendations emerging from this consultation reflect a shared commitment to creating an enabling ecosystem for CCUS in India. Timely policy support, investment mobilisation, and innovation-led deployment will be crucial for scaling carbon capture technologies and advancing national climate objectives,\" said Ranjeet Mehta, CEO & Secretary General, PHDCCI.

The officials said the proposed framework aims to support low-carbon technology use. The Rs 20,000 crore plan links climate goals with industrial needs. Speakers said coordination across public and private groups will matter. The consultation points to policy clarity and funding as key. The Cabinet is still reviewing the framework for Carbon Capture, Utilisation and Storage.

With inputs from PTI